Thursday October 30 2014
News Source: Global Exchanges
Focus: Money Market Funds
Type: General
Country: European Union
Link: http://europa.eu/rapid/press-release_IP-14-1228_en.htm
The European Commission (EC) has adopted its first `equivalence` decisions for the regulatory regimes of central counterparties (CCPs) in Australia, Hong Kong, Japan and Singapore.
The CCPs in these jurisdictions will be able to obtain recognition in the EU, and can therefore be used by market participants to clear standardised OTC derivatives as required by EU legislation, whilst remaining subject solely to the regulation and supervision of their home jurisdiction. Although rules may differ in the detail, international regulators are pursuing the same objectives to promote financial stability by promoting the use of CCPs that are subject to robust prudential requirements. Through the use of deference, as agreed by the G20, regulatory gaps, duplication, conflicts and inconsistencies which can lead to regulatory arbitrage and market fragmentation are limited.
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